My partner got in a mess with his books, before being made redundant I was an admin manager. I've a little knowledge of book keepig, ie enterig income ad outgoings. However I need someone to explain as though I am a complete idiot ( so I undderstand clearly. If I input for example £1000 income from one job in a week into the system, how and when can I deduct a percentage for the tax man. Would I for instance then withdraw from the business account £233.53 and deposit to the saving account? And how would I list this on my software, would I simply state withrawel for taxes, or do I list it as a drawing ie as though it is part of the personal wage.
Hate to sound dumb but do not want to get this wrong.... As I say Ive a basic understanding and do not want to admit defeat! Thanks in advance
My partner got in a mess with his books, before being made redundant I was an admin manager. I've a little knowledge of book keepig, ie enterig income ad outgoings. However I need someone to explain as though I am a complete idiot ( so I undderstand clearly. If I input for example £1000 income from one job in a week into the system, how and when can I deduct a percentage for the tax man. Would I for instance then withdraw from the business account £233.53 and deposit to the saving account? And how would I list this on my software, would I simply state withrawel for taxes, or do I list it as a drawing ie as though it is part of the personal wage.
Hate to sound dumb but do not want to get this wrong.... As I say Ive a basic understanding and do not want to admit defeat! Thanks in advance
Reality check. He is in a mess. You will be compounding that. You say you have a basic understanding, but a transfer to a savings account is not a wage, nor is it drawings, its a transfer. This is basic stuff. So how will you get on with more complex stuff? Allowable expenses just one example of a complete minefield. Dont believe what the TV ads about your software about it being easy. You will end up with fines and penalties for getting it wrong. Great that you are saving for tax, but do yourself and your partner a favour and get some paid for bookkeeping/Accountant, otherwise you will just make things so much worse. Admin and bookkeeping are not the same. Although your admin skills can be useful for organising him ready for books being done by a professional, that will keep the cost down. Make a mess in the software will increase the costs. Then if you have time on your hands do a course. AAT, level 2 is a good start.
